How to Write a Business Plan

A detailed business plan is essential for the success of any startup regardless of the venture and whether or not you are looking for funding from financial institutions and investors.

A business plan outlines your goals, and strategies to achieve them, and serves as a tool to attract lenders, investors, and partners, while also guiding the progress of your venture.

Here’s a step-by-step guide to writing a good business plan.

1. Know your audience

The structure and content of your business plan will be determined by the audience you are
trying to appeal to.

You will have to come up with different versions for the different categories of investors including one for yourself to guide the implementation of the idea and also to help you track your progress as the startup grows.

2. Be concise

If you want your target audience to read your business plan, keep it brief, and simple and go straight to the points such as your target market, strategies, and how and when the investors will get returns on their investment.

However, do not make your audience look for more information by being too brief and overlooking important facts.

3. Be conservative in your projections

If you are writing a plan for investors, it is understandable that you want to look good to win them over but you have to resist optimism.

It is better to have low estimates and perform better when you hit the market than to overestimate your potential.

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Avoid guesswork by hiring an accountant to do the financials for you and organize them in a professional format.

4. Back up all claims with proof

Most startups have to use projections and assumptions in their business plans since they do
not have the required figures.

It is important to support your projections with industry statistics to give them more credibility. You have to show how you arrived at the budget, sales projection, pricing and contingency among others.

5. Have realistic time frames

Conduct extensive research on how long similar ventures in your industry took to hit certain milestones.

Your company will most likely take the same amount of time. When making estimates add more time to your projections to factor in unforeseen delays.

6. Be creative

Keep in mind that investors get very many proposals for startup funding. Increase your chances of getting noticed from the pile by including something creative in your executive summary.

Do not just replicate a prototype; personalize your business plan by telling a captivating story on how the idea came about. In addition, use visuals such as charts, graphs, and tables to break the monotony of the text and add more life to your idea.

7. Have your plan reviewed

Give your final copy to several experienced and impartial people who can provide constructive criticism on the content and presentation of your idea and update the draft accordingly.

Working on a business plan can be a daunting task and after going through it countless times, you can become numb and easily overlook some errors.

Small mistakes such as spelling gaffes or using the wrong font can be a turnoff to your targeted audience.

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